November 20, 2019 (MLN): Pakistan’s import bill stood at $3.6 billion during the month of October, showing an increase of 9% as compared to previous month and a decline of 23.5% as compared to same period of last year.
Resultantly, the expenditure on import declined by around 23% during the first four months of current Fiscal year, from $19 billion to $14.6 billion, a report by State bank of Pakistan revealed on Wednesday.
Pakistan continued to import majorly from its top five favorite import avenues, i.e. China, United Arab Emirates, Singapore, United States of America and Saudi Arabia. This can be said with a fair amount of certainty as around 53% of the total imports was accounted for by these five countries.
China continued its legacy of being the largest import avenue for Pakistan, for the latter imported around $848.1 million worth of goods from it. This brought the total import bill for the first four months at $3.14 billion, i.e. down by merely 9% as compared to same period of last year.
This was followed by United Arab Emirates, as Pakistan imported around $586.3 million worth of goods and services from it during the month. While this figure is almost the same as that of previous month, it is 35.7% less than the amount recorded in same period of last year. Furthermore, import from UAE during the first four months of FY20 has now reached $2.44 billion, i.e. 30.3% less than the same period of last year.
Singapore emerged as the third largest import avenue for Pakistan, as the total imports from this country amounted to $198.5 million during October, showing a growth of 32% as compared to previous month and a decline of 48% as compared to same month of last year. So far, Pakistan’s import from Singapore has reached $751.7 million in the current Fiscal Year, marking a decline of 50% against the same period of last year.
The imports from Saudi Arabia and United States were almost neck-and-neck, as Pakistan spent around $505.3 million and $522 million respectively on the goods imported from these countries. Nonetheless, Pakistan increased its import from Saudi Arabia by almost 41.8% as compared to previous month, and United States by nearly 69.7% as compared to previous month.
November 20, 2019 (MLN): Pakistani rupee (PKR) closed today's trading session relatively unchanged against the USD with the rate remaing stable at PKR 155.37
The rupee traded within a very narrow range of 6 paisa per USD showing an intraday high bid of 155.38 and an intraday Low offer of 155.35.
Within the Open Market, PKR was traded at 155/155.60 per USD.
Alternatively, the currency gained 76 paisa against the Pound Sterling as the day's closing quote stood at PKR 200.51 per GBP, while the previous session closed at PKR 201.27 per GBP.
Similarly, PKR's value strengthened by 5 paisa against EUR which closed at PKR 171.89 at the interbank today.
On another note, within the money market, the overnight repo rate towards close of the session was 13.10/13.40 percent, whereas the 1 week rate was 13.20/13.30 percent.
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November 20, 2019 (MLN): Total Exports from Pakistan as per Balance of Payment (BOP) during the Jul-Oct FY20 amounted to $8.2 billion (provisional), as against $7.9 billion in Jul-Oct FY19. This resulted in an increase of 3.35% YoY during the period under review.
Expansion of export market is the main key to earn foreign exchange. Pakistan's exports depend on only a few markets i.e. the United States, China, UK, Germany, United Arab Emirates, Netherlands and Spain.
As per the data released by State Bank of Pakistan (SBP), among the top trading partners, the United States of America (USA) remained the top export destinations of the Pakistani products during the Jul-Oct FY20 as its share of imports in Pakistan's overall exports increased by 4.34% YoY to $1.4 billion.
On yearly basis, the exports to the USA surged by 2.87% to $308 million in Oct FY20 and on a month-on-month basis, the exports grew by 10.56% when compared to $339 million of Sept FY20.
In the second place was China as its imports stood at $586 million in during Jul-Oct FY20, down slightly by 1.52% YoY against $595 million of the same period of FY19. Exports to China were recorded at $147 million, depicting a decline of 8.3% YoY in October FY20, however, exports went up by 1.35% MoM.
This was followed by the United Kingdom, wherein Pakistan exported goods worth $580 million against the exports of $606 million last year, showing a decline of 4.29% YoY during Jul-Oct FY20. On a yearly basis, exports declined by 3.5%, valued at $154 million when compared to Oct FY19. However, there was a rise of 9% MoM in imports from the UK to Pakistan in Oct FY20.
Among other countries, the exports to UAE were recorded at $586 million against $595 million whereas the exports to the Netherlands valued at $344 million against $314 million last year, showing an increase of 9.43% YoY.
During Jul-Oct FY20, Pakistan’s exports to Germany stood at $445 million, as against $446 million during the same period of FY19, showing a marginal decline of 0.15% whereas it jumped by 8.9% to $122 million in Oct FY20 when compared to Oct FY19.
The exports to Afghanistan stood at $339 million in Jul-Oct FY20, against $388 million, down significantly by 12% YoY of the same period of FY19. On a yearly basis, it mounted by 7.9% in Oct FY20.
Whereas, the exports to Spain increased slightly by 0.2%, from $311 million to $310 million in Jul-Oct FY20 when compared to the same period of last fiscal year.
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November 20, 2019: Government has approved renewable energy policy 2019 with the aim to produce cheap and clean energy by using indigenous resources.
This was announced by Minister for Power Omer Ayub and Special Assistant on Petroleum Nadeem Babar at a news conference in Islamabad on Wednesday.
Omer Ayub was confident that generation from renewable sources will help bring down the power tariff in future. He regretted that the previous government installed expensive power through the LNG plants.
Giving the targets set in the policy, the Minister for Power said that eight thousand megawatts of power will be produced from renewable sources including solar and wind by 2025 and twenty thousand megawatts by 2030. This, he said, does not include the hydel generation and if it is also included the share of clean and green energy will be sixty to sixty five percent.
Omer Ayub said that under this policy, manufacturing of solar panels and wind turbines will also be locally manufactured. This, he said, will give a major boost to the industrial base in the country.
The Minister for Power said there is potential of forty billion dollars investment in the country's renewable sources and some companies have already started invested in it. Danish, Japanese and Chinese companies have expressed interest to invest in the manufacturing of solar panels and wind turbines.
Nadeem Babar, in his remarks, said that this is a forward looking and progressive policy which has been prepared after consultations with all the stakeholders including the provinces. He said under this policy, contracts will be awarded through a transparent open bidding.
Minister for Power Omer Ayub said the revenue of power sector has increased to the historic 229 billion rupees as compared to the previous year under the leadership of Prime Minister Imran Khan. He said this has been done by ensuring efficiency and taking action against the pilferage.
November 20, 2019 (MLN): The State Bank of Pakistan released the Bid Pattern for today's MTB Auction.
Auction target is Rs.500.00 billion against a maturing amount of Rs.175.77 billion, showing an additional funding requirement of Rs.324.23 Billion.
In the previous auction cut off yield for 3, 6 and 12 months was 13.2902, 13.2899 and 12.79 percent.
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